Jack Henry & Associates (JKHY) Investor Day 2026 summary

Financial performance and outlook

• FY26 non-GAAP revenue was $2.5B, up 7.3%; operating margin reached 24.1%, expanding 92 bps; GAAP EPS was $6.98, up over 11.9%; ROIC was 23.2%.

• Free cash flow exceeded $539M, with 100.7% conversion; FY26 shareholder returns included $448M in repurchases and $179M in dividends, while R&D spending was $358M and the annual dividend rose for the 22nd consecutive year.

• FY27 guidance: non-GAAP revenue growth of 6.3%-7.3%, GAAP revenue of $2.684B-$2.709B (+5.5%-6.5%), operating margin expansion of 20-40 bps as a floor, and free cash flow conversion of 80%-100%; GAAP EPS growth of ~5% includes a $23M deconversion drag.

• Revenue outlook rises from 6.3%-7.3% in FY27 to ~6.7%-7.7% in FY28 and 7%-8% in FY29; FY28-29 are outlook, not guidance, and long-term growth target is 7%-8%+.

• Core revenue was $750M, up 7%; payments exceeded $917M; complementary revenue was $740M, up 7.7%; all three main segments are expected to grow.

Sales, market position and execution

• FY26 delivered 58 competitive core wins, including 14 institutions with over $1B in assets; trifecta wins reached 59%, up from 39%, with a 60%-65% target for the current year.

• Multi-billion-dollar wins rose to 45 in FY24-FY26 from 23 in FY21-FY23; market share among institutions over $1B reached 32% across banking and credit unions, including 48% in credit unions.

• Client retention has remained above 99%, excluding M&A; average contract length is six years, supporting recurring revenue and visibility from signed wins.

• Roadmaps covered over 60 products; delivery reached 94% in the prior six-month period and nearly 90% in July 2026, versus 69% at process start; 650 features are delivered annually.

• Product rationalization retired 18 products over two years, with 24-36 months for client transitions; further retirements and potential divestitures remain under consideration.

Platform and product expansion

• The cloud-native, API-first platform integrates with foundational cores for modular modernization without a large core conversion; its three-year roadmap was completed on time and under budget.

• Platform modules include general ledger, ACH, domestic and international wires, exception processing, deposit accounts, and tokenized deposits with USDC support; modules integrate with existing cores.

• The platform runs active-active across two GCP regions and serves 1,030 financial institutions and 16M users; Banno is expanding from retail into business and treasury functionality.

• Tap2Local completed rollout in May 2026; ~900 Banno clients are live and ~1,000 have access. Additions include invoicing, payouts, product catalog, and small-business remote deposit capture.

• Expense management and virtual card issuance are near development-complete; fraud-focused P2P payments with Moov, Visa, and Mastercard are slated for initial launch at Connect, with a business version planned for 2027.